Cheese production rose 0.5% YOY in January according to the USDA. American cheese output increased 5% YOY (with a 5.7% YOY increase for cheddar) while “other cheese” (including mozzarella) fell 2.3% YOY for the month.

With the growth in milk output and weak cheese demand, production of ingredients continued to expand. Combined NFDM & SMP output rose 8.1% YOY in January, reflecting a 11.7% YOY rise in NFDM production while SMP output declined 8% relative to the same month in 2020. Butter production continued to surge, up 7% YOY in January. Butter production has now increased in 18 of the last 20 months for which data is available.

Dry whey production fell 0.4% YOY for the month, following a 2.3% YOY increase in December. January WPC production was up 6.6%, reflecting a continued recovery in output of WPC 25-49.9 products (+8.1% YOY) while WPC 50-90 output rose 5.6% YOY.

Lactose production increased 7.5% in January and has grown YOY in five of the latest six months for which data is available, following a significant contraction in the nine months to July 2020. MPC production rose for the seventh consecutive month in January, up 1% YOY. Output of WPIs has surged over the past few months and was up 11.8% YOY in January.